h4d lecture 1 stanford 2016

Session 1: Class Overview, Mission Model, Customer Development

Tom Byers, Pete Newell, Joe Felter, Steve Blank

Agenda

• Teaching Team Introduction• Course Objectives• Class Logistics• Teaching Style• Lecture: Mission Models/Customer Development• Team Presentations

Teaching Team

Steve Blank

8 startups in Silicon Valley• Semiconductors• Supercomputers• Consumer electronics• Video games• Enterprise software• Military intelligence

Teach: Stanford, Berkeley, Columbia, NYU, UCSF, ImperialDetails at www.steveblank.com

INSTRUCTORS

Steve Blank, Tom Byers, Joe Felter, Pete Newell, Bill Perry

8 startups - 32 years in Silicon Valley• Semiconductors• Supercomputers• Consumer electronics• Video games• Enterprise software• Military intelligence

Teach: Stanford, Berkeley, Columbia Details at www.steveblank.com

• Professor, MS&E and Endowed Chair in Entrepreneurship, School of Engineering

• Faculty Director and Founder, STVP• Executive VP and General Manager of Symantec

during its formation• Lead Author of McGraw-Hill Textbook:

Technology Ventures: From Idea to Enterprise

Details: http://www.stanford.edu/~tbyers

INSTRUCTORS



Teach: Stanford, Berkeley, Columbia Details at www.steveblank.com

• To be completed • Colonel, US Army Special Forces (Retired)

• Appointments with CISAC, Hoover and MS&E at Stanford

• Commanded the Counterinsurgency Advisory and Assistance Team (CAAT) in Afghanistan

• Helped establish and directed the Combating Terrorism Center (CTC) at West Point

INSTRUCTORS



Teach: Stanford, Berkeley, ColumbiaDetails at www.steveblank.com

• 6 startups in Silicon Valley• Online Travel (2)• Online Health• Big Data Analytics (2)• Entrepreneurship Analytics• Active Angel Investor (>40 Investments)• VC – CMEA Capital

• …• 30+ years in SV• Founding Exec Director

of the Lester Center• VC – Monitor Ventures• Founder and Angel

Investor• Software and devices• Internet services• Life Sciences

• Teaching at Haas for 22 years

• On boards of 5 companies

INSTRUCTORS

• Army Colonel (retired)

• Visiting Research Scholar, National Defense University

• Former Infantry Brigade Commander & former Director, U.S. Army Rapid Equipping Force

TAs: Kim Chang, John Deniston, Ben Kohlmann

• F/A-18 pilot• Speechwriter for Cmdr, US

Fleet Forces• Member Naval Warfare

Development Command's Rapid Innovation Cell

• Co-Founder of the Defense Entrepreneurs Forum

• seven years Air Force officer leading analysis in national intel agencies, special ops, and drone missions

• deployed multiple times in Afghanistan embedded with an Army Special Operations team

• Design Engineer at Boeing (777 Fuselage)

• Engineering Project Mgmt & Global Supply Mgmt at Apple & Nest

• DFJ Entrepreneurial Leadership Fellow, 2015-16

TAs: Chris DiOrio, Konstantine Buhler

• Prospective submarine officer in the U.S. Navy

• Interned with NASA, MIT Lincoln Laboratory, and NSA

• National Security Scholar at CISAC

• Founded a disaster preparedness organization for seven years, working closely with gov’t agencies

• Partnered with Dept of Homeland Security

• Worked on software tools for US gov’t and security initiatives at Stanford

Bill Perry - Course Advisor

• Michael and Barbara Berberian Professor (emeritus)

• Senior fellow at the Freeman Spogli Institute and the Hoover Institution, and Director of the Preventive Defense Project

• Former Secretary of Defense

H4D Military Liaison Officers

Colonel John Cogbill US Army

Commander Todd CimicataUS Navy

LTC Ryan BlakeUS Air Force

LTC Scott MaytanUS Air Force

LTC Ed SumangilUS Air Force

LTC Steve BehmerUS Air Force

Captain Chris ConleyUS Coast Guard

LTC Mark MickeUS Marine Corps

Colonel John ChuUS Army

Sponsors, Mentors, Advisors and Liaisons

Each team has a:• DOD/IC problem sponsor• Industry technical mentor• Additional advisors• Stanford military liaison• Support from DIUx

Sponsor

• Your primary contact in the DOD/IC• They own the problem definition• They are the gateway for customer discovery • You connect with them as needed (at least weekly)

– Refine MVPs– Expand Beneficiary contacts

Mentor

• They are part of your team– They have committed to spend at least an hour/week

• Your local industry support person• You connect with them at least weekly• If it is not working out let us know ASAP

Advisors

• Industry support person– Booz Allen, Leidos, etc.

• They are part of the class– But they are not your mentor– They have committed to respond to emails/calls

• You may connect with them as needed

Military Liasons

• Miltary personnel at school at Stanford• Local resource for understanding

– Customers– Stakeholders– Problems

• Another source for Customer Discovery• Back door interface with military

Primary MentorsTeam Mentor

Narrative Mind Brian Fishman (Facebook)

Guardian Peter Blake (SkyCatch)

Fishreel Dr Dan Boneh (Stanford Security Lab)

Capella Dan Berkenstock (Google)

Aqualink TBD

Sentinel TBD (Palantir)

Skynet TBD

Live Tactical Threat Toolkit TBD (Oculus)

Course Logistics

MS&E 297Hacking For Defense

Week Team Presentation Lecture TopicMarch 29th Mission Model Canvas Lecture 1 Mission Model, Cust Development,

BeneficiariesApril 4th Workshop Working with the DOD/IC, Discovery in DOD/IC

What’s a Minimal Viable ProductApril 5th Beneficiaries Lecture 2 Value PropositionApril 12th Value Proposition Lecture 3 Product/Market FitApril 19th Product/Market Fit Lecture 4 DeploymentApril 26th Deployment Lecture 5 Buy-in & SupportMay 3rd Buy-in & Support Lecture 6 Mission AchievementMay 10th Mission Achievement Lecture 7 Activities and ResourcesMay 17th Activities & Resources Lecture 8 Partners and Mission CostsMay 24th Partners and Mission

Costs, Draft of Final LLPLecture 9 Reflections

May 31st Lessons Learned

Schedule

Course Readings - Weekly

Check the SyllabusEvery Week

Course Readings – Lectures Online

Lectures online

• All students must watch lectures weekly • Class will be lecture discussion with cold calling

Weekly Team Deliverables• Lessons Learned presentation 8 minutes

– Summary of your “outside the building” progress– MVP update, demo of major changes – Results of hypothesis testing– Update mission model canvas– Update your blog

Course Objectives

MS&E 297Hacking For Defense

What’s The Class About?• Teaches Lean Startup Theory + hands-on practice• You will learn:

– How the DOD/Intelligence community works – Urgency, Evidence-based entrepreneurship, Customer

Development, “good-enough” decision making• You will do so by talking to10 ”beneficiaries” e.g. DoD/IC

end users/stake holders a week and present your results in class weekly

Course Objective: Simulate A Startup

• Create startup pressures, uncertainty, and challenges– Our expectations are unreasonable, they require extraordinary effort– We expect failures, iterations and Pivots– Class is a “lab” - books/lectures are tools, not answers– Fail fast, learn quick, push you outside your comfort zone– We are relentlessly direct

The Lean Methodology

Part 1

Agile Engineering

+Part 2

Part 3

Elements of Lean Startup

1. Frame Hypotheses

• Frame Hypotheses

1. Frame Hypotheses

• Frame Hypotheses Mission Model Canvas

Mission Model Canvas = hypotheses of how you create and deliver value for the

DOD/IC and the warfighter

Part 1

Source: Alexander Osterwalder- Business Model Generation

Beneficiaries

Deployment

Buy-in/Support

Mission Achievement

Value Proposition

Activities

Resources

Partners

Costs

Mission Model Canvas


Beneficiaries

Deployment

Buy-in/Support

Mission Achievement

Value Proposition

Activities

Resources

Partners

Costs

how does the team get “Buy-In” from all the beneficiaries?

How will we deploy the product to widespread use? What constitutes a successful deployment?

Who are our most important customers? Stakeholders?

What are their pains/gains?

What job do they want us to get done for them>

How are we solving each customers pains/gains?

How?

What product/service features match their needs?

What key activities do we need to be expert in?

What key resources do we need to own or acquire? Financial? Human?

Who are our key partners? Suppliers?

What are we getting from them?Giving them?

What is the Mission Budget/Cost? How will we measure Mission Achievement?

2. Test Hypotheses

• Frame Hypotheses• Test Hypotheses

Business Model Customer Development

Customer Development is how you search for the model

9 Guesses

Guess Guess

GuessGuess

GuessGuess

Guess

GuessGuess

Customers

Channel

Customer Relationships

Revenue Model


Customer Development is Hypothesis Testing

3. Build Incrementally & Iteratively

• Frame Hypotheses• Test Hypotheses• Build the product

incrementally & Iteratively

Business Model Customer DevelopmentAgile Engineering

The Minimum Viable Product (MVP)

• Smallest feature set that gets you the most … - learning, feedback, failure, orders, … - incremental and iterative

• It is not a prototype • It is not a deployable version with the fewest features• It is what enables a test of a hypothesis • It may be a drawing, a slide, a wireframe, clickable

workflow, etc…

The Pivot

• Definition: A substantive change to one or more of the business model canvas components

• Iteration without crisis

• Fast, agile and opportunistic

Getting Out of The Building• You can’t pass by attending the lectures• This class is not about our lectures• You can’t cram this work• The class is about the work you do outside the building

talking to beneficiaries

Issues You’ll Encounter

• Product/Market Fit – If assumptions are failing - pivot by week 4

• Team Issues– Someone not working hard enough

• address it head on – Team members are not your friends, they are your partners - look

for ways to work it through • If you need help, ask

– CA’s, instructors, mentors, advisors are here to help

The Goal is Not to build a Cool Demo

We are Not an Incubator

We are Not an Incubator

Mentors/Advisors are Not Allowed to Talk to You about Jobs, Funding,

Until Class is Over

If You’re Not Getting Thrown Out You’re Not Trying Hard Enough

Catfishing team now holds the record

Care Personally

ChallengeDirectly

Derived from Radical Candor — The Surprising Secret to Being a Good Boss

Overly Polite

Don’t Care

“Relentlessly Direct” Teaching

Manipulative Insincerity


Overly Polite

Don’t Care


Ruinous Empathy

Care Personally

ChallengeDirectly


Overly Polite

Don’t Care


Ruinous Empathy

Care Personally

ChallengeDirectly


Overly Polite

Don’t Care

Obnoxious Aggression


Ruinous Empathy

Care Personally

ChallengeDirectly


Overly Polite

Don’t Care


Relentlessly Direct


Ruinous Empathy

Care Personally

ChallengeDirectly



Relentlessly Direct

h4d lecture 1 stanford 2016

Education